Effect International
281 East 200 South
Logan, Utah 84321
info@effectinternational.org
Dec. 7, 2010
EnergySolutions
Val J. Christensen, CEO and President
423 West 300 South Suite 200
Salt Lake City, Utah 84101
281 East 200 South
Logan, Utah 84321
info@effectinternational.org
Dec. 7, 2010
EnergySolutions
Val J. Christensen, CEO and President
423 West 300 South Suite 200
Salt Lake City, Utah 84101
Phone: 801-649-2000
Dear Val J. Christensen ,
Dear Val J. Christensen ,
Executive Summary
Effect International works to bring literacy to Nepal and India. Through the building of schools and libraries and donation of books, Effect International is making a difference. They don’t give money to individuals to help create better lives, they teach valuable skills and let them learn how to create these lives for themselves. Reading is a necessary skill in life and EI wants to give everyone that opportunity. They are asking EnergySolutions to donate $5,000 to help operate one of their schools and in return EnergySolutions will be named as a sponsor in correlation with Effect promotion and marketing. The disposal of nuclear material is a very controversial topic in Utah and has caused negative publicity and public opinion of EnergySolutions in the past couple of years. EnergySolutions has made recent changes in management and is heading in a new direction. Becoming more involved with charity work and sponsoring a school in India could be the image boost that EnergySolutions needs.
Sponsor Appeal
EnergySolutions is proud of its philanthropic history.Effect International is approaching EnergySolutions because they believe that it can make a donation that will have a great impact on the people of India and Nepal and help boost its image.
In 2008, EnergySolutions tried to get a license from the Nuclear Regulatory Commission (NRC) to import approximately 20,000 tons from nuclear facilities in Italy. The NRC opened a forum for public comments and over 2,500 comments opposing Energy Solutions and its proposal were expressed. (U.S. NRC, 2008).
There are many negative representations of EnergySolutions, one example states:
“Think about it... is it not Government's 1st (#1, Numero Uno) (and foremost) responsibility -- to "protect and preserve" ("support & defend") the Populace -- along with the Constitution?!! Where are your priorities?; -- and who comes first -- a filty-lucre-minded money-laundering (and it does need "laundering") -scheme hatched by "brilliant (bent-on-destruction) businessmen"'; or else, the "innocent, unsuspecting-public!"?” Reed Jacobs, Salt Lake City. (Web Based Adams)
In July 2010, EnergySolutions announced it was “abandoning its plans to dispose of nuclear waste from Italy in Utah's west desert and instead will try to help open a disposal facility in that country.” (Vergakis, 2010). There are many people in Utah that are opposed to everything EnergySolutions stands for so along with recent management changes, and refinancing of debt and the suspension of dividends, adding in a new charity could be exactly what investors and the public want to see (Oberbeck, 2010).
According to its website, “EnergySolutions supports educational institutions and nonprofits when the primary focus of the request to promote academic achievement in the areas of environment, science & technology, or health and human services.” (Contributions)
Obviously Effect International’s mission to educate Indian and Nepalis children promotes academic achievement and is a human service.The students at EI’s schools are learning independence and will create a ripple effect in the desire to educate their own children. Being tied to this educational movement would be a great angle for Energy Solutions to work from. It is a brand new cause for Energy Solutions which highlights diversity and care for humanity. The charity is also based in Logan, UT which is out of the Salt Lake region. It is still close to home but is far enough away to be considered a new venture.
In this exchange, Effect International will be giving EnergySolutions a chance for a new and improved image. Public opinion is crucial for any organization and EnergySolutions would thrive off the benefits associated with working with a charity.
Problem
Regarding Poverty:
Poverty is widespread in India with 42% of total population (456 million) living below the global poverty line of $1.25 a day. The stark inequalities in the distribution of money can be attributed to different social groups, economic groups and geographic regions.
Poverty alleviation programs and reforms by the Indian government are often rendered useless by the prevalent corruption by bureaucrats and politicians at various levels.
Regarding Education:
Around 40% of the total population in India is illiterate and only 15% of the students are able to reach high school. The government statistics in 2001 estimated the total number of "absolute non-literates" to be around 304 million. The national literacy rate is 68.84% with the average female literacy rate estimated as 53.63% and average male literacy estimated as 75.26%.
The state of Kerala has the highest literacy rates of 90.02% while Bihar has the lowest literacy rate of 47.53% with the average female literacy rate being only 33.97%.
About half of India’s men and women do not know how to read or write.
Solution
Effect International’s approach to illiteracy in Nepal and India is striving to raise awareness and increase funds to support the cause. Effect International (EI) wants people to know just crucial a problem illiteracy really is and what they can do to help. EI will approach this growing problem of illiteracy by holding fundraising events, updating a blog, and a promoting a homepage to inform people about Effect International and encourage them to support and volunteer.
The objectives in meeting the approach are to:
-raise awareness
-increase funds
-encourage involvement
-recruit volunteers
EI is confident that with all of their efforts along with donations and volunteer work they will be able to meet their goals in raising funds and awareness. EI plans on using the money donated towards building schools, buying supplies for those schools, and paying teachers; all to help those in Nepal and India become more literate.
Capabilities
Effect International began working in 2009, in a small village called Sasaram in the state of of Bihar. They started operating our first school in April of 2010 to 115 students staffed by 6 teachers and a principle. They are currently working on a library program in Sasaram, several thousand books are being transported to stock empty library shelves.
Effect International is committed to the long-term educational needs of the communities they serve. Through their project model, communities will be empowered in their project. This ensures ownership. Effect provides initial project funding, training and help infant programs. They make sure that each project can be self-sufficient and not always dependent upon Effect International.
Budget
On the website, it said that donations usually range from $500 to $5,000. Effect International believes that literacy is so important and should be part of everyone’s life, no matter where they live or what their circumstances are. Because Effect International feels so strongly about their cause, they are asking for $5,000. A school can be built in India or Nepal for $25,000 . The entire operating cost for one of these schools is under $10,000 per year. (Donate)
As of the third quarter of this year, the goodwill donated by EnergySolutions was $483,434.(Oberbeck, 2010) That is a tremendous amount of money, but because that amount is already spent, another $5,000 seems like nothing. The satisfaction of spreading literacy around the world is a great reward.
Conclusion
Supporting Effect International and sponsoring a school in India would be a tremendous opportunity for EnergySolutions to branch out in their donations and reach a new segment of Utah. A $5,000 donation is small compared to the summation of donations EnergySolutions contributes each year and the community would love to see them reach out. Effect International could benefit from a larger contribution and continual sponsorship and support. Effect would ask for more financial contribution if the $5,000 limit were not listed. Public image is a necessity for any company, especially EnergeySolutions at this time. Effect International can offer a boost to the negative publicity EnergySolutions has had in the past year.
Reference List
Contributions. Contribution Guidelines. Retrieved from http://www.energysolutions.com/our-company/contributions
Donate. Effect International. Retrieved from http://effectinternational.org/donate.html
Oberbeck, Steven. (2010, Nov. 9). Utah’s EnergySolutions Looks Past Losses to Better Q4. Salt Lake Tribune. Retrieved from http://www.sltrib.com/sltrib/money/50640888-79/quarter-energysolutions-million-third.html.csp
U.S. NRC. (2008, Oct.). Fact Sheet on EnergySolutions' Proposal to Import Low-Level Radioactive Waste from Italy. Retrieved from http://www.nrc.gov/reading-rm/doc-collections/fact-sheets/energysolutions.html
Vergakis, Brock. (2010, July 15). EnergySolutions nixes plan to import Italian nuclear waste. Daily Herald. Retrieved from http://www.heraldextra.com/news/state-and-regional/article_aec851ad-ecbc-54da-b149-39ede7940ab0.html
Web Based Adams. U.S. NRC. Retrieved from http://wba.nrc.gov:8080/ves/
